Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1887-12-13
The Presidents Message.

topic of tariff reform. Every Lie
subject was excluded in order that
Congress may be able to comprehend
fully the absolute and pressing ne
cessity of immediate consideration of
{" the state of the Union" as shown
in the present condition of the treas
ury. AS a demonstration of the par
amount Importance of fiscal legisla-
ton directed to the end of extin-
gushing the growing surplus,
through a reduction of tariff taxes,
the message is unanswerable. On
the Both of June next the sum in the
federal treasury over and above the
needs of the government will be
$40, 600, 900. Hitherto the accu-
mutation of money has been to a
great extent prevented by the re-
demption of matured bonds and the
purchases required for the sinking
fund, but in the future will
be cut off by the fact that there are
no more. bonds subject to call, and
the purchases of unmatured bonds
authorized by law for the sinking
fund will consume but 4 smal frac-
ton of the estimated surplus. 1t is
not clear that the Secretary of the
Treasury has authority to go into
the market to buy bonds at a heavy
premium beyond the requirements OF
the sinking fund, and if he had the
authority, the exercise of it would
be of n doubtful eNpediency. Ow-
ing to- 4 grave financial disturbance,
caused in part by the accumulation
of funds in the treasury. S1S,S77,-
500 was expended in July last, i'm
mediately upon the opening of the
fiscal year, for bonds for the sinking
fund, and this expenditure not hav-
ing relieved the distress at the money
centres, s27,6S4,2S3 vas shortly
after expended for four and four and
a-half per cent. bonds, the annual
contribution to the sinking fund be-
ing thus completed. The govern
ment was able to give some addition
al relief by preparing interest and by
increasing the governments deposits
in certain banks, but beyond this the
government could not go, and the
country is now face to face with a
surplus which, under existing fiscal
laws, must continue TO increase, to
the great risk of every important in
terest in the country, the purchase
of bonds at a premium being unau-
thorized by any general law. The
immediate reduction of the govern
ments income by Suitable legislation
is i~mperatively necessary. This re-
duction is to be effected, not by re-
moving the internal taxes oil luXu-
ries, such as whiskey, beer and to-
bacco, but by reducing the tariff tax
es on the necessaries of life consumed
by the poor, and those also On the
raw materials of manufactures. The
greater good of the greater number
will thus be consulted without injury
to the manufacturing capitalist or to
the wage-earner. The present tariff
bears hardly upon the poor, i%ncreas-
ing largely the price of every article
they buy, and benefits but few per-
sons. The last census showed that
there were 1882, O99 of our popula-
ton engaged in all kinds of indus
tries, 7,670,4 1913 being engaged in ag-
riculture, 4,074.239 in professional
and personal service, and 1~,SlO,236
in trade and transportation, while
the number engaged in occupations
in which the foreigner can compete
is but 1928, OS9. To these the APP
peal is always made to resist change.
the idea being held out that q lower
tariff rate means lower wages. This
is delusive, as the history of this
country under a tariff far lower than
any nowadays practicable abundant
ly shows. A lower tariff al wider
markets, more constant employment,
and better wages. But that the tar
if is unnecessarily high is shown by
the fact that there arc manufacturers
who make money selling their wares
under the prices the tariff rates
would enable them to command, and
that the steel trust, oil trust, sugar
trust, and various other trusts"
or pools" of producers have been
formed under protection of the tariff
wall to keep prices up above the fig
urcs at which, as facts show, it is
possible to sell with profit. The
b~eneficiaries of the high tariff rates
must not think that their interests
are to be ruined by 4 sudden, great
or reckless reduction of rates, though
the cry of I: free trade" will no
doubt be raised in their behalf in pro-
tectionist quarters. With all the re-
auctions that the fiscal situation de-
mands, the tariff will remain high
enough to afford all the protec-
ton" of which it is fairly capable
But protectionist are in the same
boat with other citizens, and they are
as much interested as others TO ward
off the financial dangers to which the
country is now exposed. If some
small sacrifice-of large profits is ne
cessary to prevent panics, they should
be the last to refuse. Progress to-
ward a wise conclusion will not be
promoted by dwelling upon the thco-
ries of protection and free trade
That amounts only to bandying cpl
thetS. What confronts the country
at present is IN indisputable fact,
not a theory. The question of free
trade has nothing to do with the duty
of Congress at the present time
What Congress now owes to the pcO-
pie is to reduce taxation to the
amount necessary to the eX-
pen5es of an economical operation of
the government and to restore to the
business of the country the money
held in the treasury through n per-